Johannesburg, February 3, 2005

Deutsche Bank sells 25% of its South African Business to Bee group and black staff


Deutsche Bank in South Africa announced today it has reached an agreement to sell 25% of its South African incorporated operations to Uthajiri Financial Services (Pty) Ltd (Uthajiri) and black staff. Uthajiri is a wholly owned subsidiary of Uthajiri Investment Holdings (Pty) Ltd - a Black Economic Empowerment (BEE) group. The sale will be effective 31 December 2004.

Uthajiri will acquire a 15% stake in Deutsche Bank South Africa. The remaining 10% will be held by an employee share trust - Deutsche Bank Black Empowerment Share Trust. The beneficiaries of the Trust are all black South African staff currently working for Deutsche Bank South Africa, comprising 39% of the total staff complement, as well as future black staff.

Martin Kingston, Chief Country Officer of Deutsche Bank South Africa said, "Uthajiri brings with it unique insights into empowerment in South Africa and adds considerable expertise that will significantly enhance our business model. They will play a fundamental role in the business and we are confident they will contribute discernable commercial value to all Deutsche Bank businesses across the South African platform.

"Black staff ownership is a significant feature of the transaction and will help to attract and retain the most sought after black staff. The transaction enjoys the full support of the Deutsche Bank main board and they are fully committed to ensuring a long term growth strategy for Deutsche Bank South Africa."

Uthajiri is an empowerment group that is 100% black owned and managed by business leaders in the financial services and information and communications technology (ICT) sectors. Their high profile and experienced team is led by Uthajiri Chairman, Adv Dali Mpofu, Group Executive Director, Corporate Affairs of the Altron Group, President of the Electronics Industry Federation and Chairman of the ICT BEE Charter working group.

Modise Motloba, Deputy Chairman of Uthajiri, is CEO of Africa Vukani Investment Management Services and a board member of the South African Financial Markets Board. He led the Association of Black Securities and Investment Professionals (ABSIP) and the Black Business Council in formulating and negotiating the historic Financial Sector Charter in October 2003. Uthajiri has appointed Ajay Lalu as Chief Executive Officer (CEO). Lalu is a chartered accountant who was Director of BEE Strategic Services at Ernst & Young. Another key Director, Xoliswa Kakana, is an engineer and holds a position as founder and Managing Director of ICT - Works. She is also founder and chairperson of Women in ICT (WICT) forum.

Mpofu said, "We could not have hoped for a better maiden deal for Uthajiri. This is a perfect complementary relationship for both parties considering the leading position Deutsche Bank holds in South Africa combined with Uthajiri's own financial and investment skills. As partners, we look forward to being fully involved in building on the success of Deutsche Bank for the benefit for all."

Mpofu added that the investment in Deutsche Bank will give Uthajiri a significant entry point into the financial services sector and position them to develop future growth prospects.

Deutsche Bank has entered into a partnership with Uthajiri in respect of all its operations in South Africa. The stakes to be sold are in Deutsche Securities (Pty) Limited (Global Equities) and Deutsche Securities (SA) (Pty) Limited (Global Corporate Finance) which represent the majority of the South African business. For regulatory reasons, Deutsche Bank Johannesburg branch (Global Markets) cannot sell shares. However, the Branch will be fully included in the transaction by way of a separate arrangement where Uthajiri will be incentivised to participate in generating branch business.

Deutsche Bank will provide the bulk of the finance to secure the purchase of the 25% stake. The remaining portion will be provided by the Uthajiri shareholders from their own resources showing their commitment to the deal.

Uthajiri will initially deploy three senior executives to work for Deutsche Bank in South Africa. Rakesh Garach, former Lead Partner of Financial Services Group at Ernst & Young, will assume the role of Chief Operating Officer and will sit on the Deutsche Bank South African Executive Committee. A further two executives will join the Global Corporate Finance and Global Markets divisions.

Uthajiri will be represented by Mpofu and Motloba on the Deutsche Bank South African Board as non-executives. The black staff Trust will also be represented on the board.

A Joint Steering Committee will be established with equal representation. The committee will facilitate initiatives such as skills transfer, training and development, procurement, new business opportunities, strategy and building a culture of empowerment and diversity. This is in line with the broad based focus of the transaction.

Uthajiri will also nominate a Trustee to the Deutsche Bank Africa Foundation. The Foundation is an integral part of the business, and contributes R6 million per annum to key corporate social investment projects focusing on education, job creation and orphan care.

Deutsche Bank believes that this transaction builds significantly on its achievements to date and will position it to take advantage of future opportunities in the South African market.


Issued by The Communications Firm on behalf of:
Deutsche Bank and Uthajiri

 

For more information contact:

Max Gebhardt,
The Communications Firm
Tel: 011 803 7456
Cell: 082 822 8689
E-mail: max@tcf.co.za

Colin Brown
Director Corporate Affairs
Tel: +27 11 775 7407
Cell: +27 82 460 7365
E-mail: colin.brownsa@db.com

 

 

About Deutsche Bank

With roughly Euro 840 billion in assets and approximately 65,400 employees, Deutsche Bank offers unparalleled financial services in 74 countries throughout the world. Deutsche Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.

Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private & business banking franchise in Germany and other selected countries in Continental Europe.

Deutsche Bank is a leading investment bank in South Africa and has a multi-talented team in all product areas with considerable experience in local and international markets. It aims to provide its clients with sophisticated and innovative financial solutions to their business requirements, delivering top quality products and services. 

Deutsche Bank in South Africa enjoys leading market shares in the equities, bond, foreign exchange and derivatives markets as well as corporate finance.

Deutsche Bank sees itself as a responsible corporate citizen which aims to be the financial partner
of choice.

 

Uthajiri Investment Holdings

Uthajiri is an empowerment group that is 100% black owned and managed by business leaders in the financial services and information and communications technology (ICT) sectors. As a recognised empowerment vehicle, the aim of the group is to establish itself as a leading empowerment partner in both these sectors, and to be seen as a catalyst for promoting true empowerment and economic transformation in these sectors.

Uthajiri Investment Holdings shareholders include Melisitshaba (Pty) Ltd (25,5%); Wallclay Investments (Pty) Ltd (24,5%); Wealthridge Investments (Pty) Ltd (25,5%) and Arusha Investments (24,5%).

Uthajiri Investment Holdings comprises of 100% interest in Uthajiri Financial Services, Uthajiri ICT Investments, Uthajiri's Advisory Services and Uthajiri Procurement Services.

Uthajiri's high profile and experienced team is led by Uthajiri Chairman, Adv Dali Mpofu, Group Executive Director, Corporate Affairs of the Altron Group, President of the Electronics Industry Federation and Chairman of the ICT BEE Charter working group.

Modise Motloba, Deputy Chairman of Uthajiri, is CEO of Africa Vukani Investment Management Services and a board member of the South African Financial Markets Board. He led the Association of Black Securities and Investment Professionals (ABSIP) and the Black Business Council in formulating and negotiating the historic Financial Sector Charter in October 2003. Uthajiri has appointed Ajay Lalu as Chief Executive Officer (CEO), Lalu is a chartered accountant who was Director of BEE Strategic Services at Ernst & Young. Another key Director, Xoliswa Kakana, , is an engineer and holds a position as founder and Managing Director of ICT - Works. She is also founder and chairperson of Women in ICT (WICT) forum.

 




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